How Fintech Apps Are Transforming Finance

Fintech apps encompass a vast array of finance-based services. From banking services to investing, fintech apps are changing finance as we know it. 

Here, we will bridge some of the prominent product categories of fintech products that create innovation.

Some of the prominent types of fintech products are:

• Neobanks: banks that are found only online but offer many financial services.

• Mobile wallets: i.e., Apple Pay and Google Pay

Some examples of fintech tools include:

• Robo-advisors: automated, low-cost investment services

• Peer-to-peer lending: i.e., LendingClub and Prosper

You can learn more about the infrastructure that supports these innovations in fintech components and tools.

Digital Banking and Neobanks

Digital banking eliminates the need for branches by allowing consumers to use any number of financial services online. Neobanks, digital-only banks, provide convenience for many.

The advantages include:

• 24/7 access: you can transact at any time, anywhere.

• Lower fees: fewer overhead costs produce savings which can be passed on to the consumer.

• Usability of accounts: accounts and nonbanking apps are designed to be user-friendly, innovative, and most importantly easy to use.

Mobile Payments and Digital Wallets

Mobile payments allow for business transactions using mobile devices. These services facilitate a more efficient, easy-to-use process for purchasing goods and services. 

Some of the other benefits that come with mobile payment applications are:

• Convenient: They allow the user to make fewer steps for completing the transaction.

• Better Security: They utilize tokenization and/or encryption for protecting a user's information.

• Widely Accepted: They are acceptable among many retailers and service providers.

Personal Finance Management Tools

Personal finance management resources help users record spending, set budgets, and accomplish earnings in their personal finances. 

These resources outline specific details regarding users spending patterns and where they can improve.

Typical features of personal finance management tools include:

• Expense tracking: users can see how much they are spending in real-time

• Budgeting tools: users can create boundaries and track those boundaries to achieve personal financial goals

• Financial insights: detailed insights into user spending habits

Investment and Wealth Management Apps

Investment platforms are open to everyone. Wealth management platforms not only provide portfolio management (investments) but also provide automated financial advice.

Potential features include:

• Automated Advice: investment strategies tailored to the individual.

• Low fees: affordable entry barriers to the capital markets.

• Simple User Interfaces: an easy-to-use interface for investors.

Lending, Borrowing, and Crowdfunding Platforms

Peer-to-peer lending and borrowing platforms allow lenders to meet with borrowers directly. Crowdfunding platforms allow raising money for projects or startups.

Some features include:

• Direct lending: lower interest rates, chances are lower to go through intermediaries which may increase costs.

• Flexible terms: options for borrowers.

• Innovative support: raise funds for new ideas easily.